Business

Aero Contractors sacks 900, NIPOST creates an Ecommerce department, Current Exchange Rate, Subsidy scam Oil Marketer jailed and other trending business stories…

Aero Contractors has sacked about 900 staff or 60% of their staff. It will be recalled that the airline went under management by AMCON when it could no longer meet debt obligations. The company says this sack is to enable it streamline its workforce. It also promised to pay pension and Gratuity to affected staff.

 

Postmaster-General of the Federation, Mr. Bisi Adegbuyi announces NIPOST’s new eCommerce department

He announced this as a step towards taking advantage of the rapid growth in eCommerce and technology backed business trends. He also announced that NIPOST is now split into Zones with each geo-political zone being a zone asides in the South West where Lagos is a zone by itself due to volume of business.

 

Oil marketer, Rowaye Jubril has been sentenced to 10 years imprisonment

Rowaye Jubril, MD Brila Energy was also asked to refund 963 million Naira to the Federal Government. Rowaye Jubril was charged with the subsidy fraud in 2012 by EFCC and was yesterday found guilty by an Ikeja High Court.

 

No Headway between Etisalat and it’s creditor banks

Etisalat been on the headlines lately for owing 13 Nigerian baks, including GTB, Access Bank and Fidelity bank. Etisalat has agreed to pay but there’s a problem and not surprsing, it has to do with the exchange rate. The banks insist Etisalat must repay the dollar portion of the loan in dollars. Which is about $235 million. At the current inter-bank rate, that could cost Etisalat about N74 billion. This seems fair, considering that Etisalat earns its revenues in Naira and thus will be in a better position to repay its loan without risk of a further devaluation of the Naira. However, banks refused because they also had to borrow in dollars to be able to on-lend to Etisalat. If they then convert the loan to naira in order to match Etisalat’s cash flow it means they will have to carry the FX risk.

 

Honourable Minister of Health has announced investigation into the Nigerian Bottling Company court case

Through a series of tweets on his personal handle, the Honourable Minister said a team of experts will look into the case and bring it to a reasonable conclusion.

Naira strengthened to N444 to the dollar

The CBN sold a total of $150 million to authorised foreign exchange dealers in the interbank at the highest bid rate of N335/$1 and a marginal rate of N320/$1. This strengthened the Naira to N444 to the dollar on Thursday, down from the N454 to the dollar it was.

 

Federal House of Representatives Amends Public Procurement Act, Raises Contract Mobilisation Fee to 50%

The House of Representatives on Thursday passed a bill seeking to amend the Public Procurement Act, 2007 into law. The new procurement act increases contract mobilisation fee from 15 per cent to not more than 50 per cent while mobilised contractors risk a two-year jail term should they abandon projects. With the amendment, the Minister of Finance also ceases to be the chairman of the National Council on Public Procurement and further replaces the minister with a person to be appointed by the president.

 

MRS to Save Nigeria $120m Annually from Jetty Expansion

Foremost downstream oil company, MRS Oil Nigeria Plc, on Thursday announced a record-breaking milestone by the company, with the berthing of a vessel with a deadweight of 75,000mt at its terminal at the Tin Can Island Port, Apapa, Lagos, adding that it was the first of its kind in any African port and could save Nigeria $120 million annually.

MRS was able to accomplish the landmark through the expansion of its jetty at its terminal in Lagos.
The upgraded terminal catapulted it into the international shipping arena for 80,000mt-120,000mt vessels’ calling ports within Africa.

A statement by the company on Thursday added that MRS also hosted the United States Ambassador to Nigeria, W. Stuart Symington, who paid a working visit on Wednesday to the MRS depot/jetty located in the heart of the Tin Can Island Port.